Tax Professional and in Service
1795 Points
Posted on 14 November 2022
Assuming that outstanding amount of said unsecured loan is more Rs. 20,000/-, this would contravene section 269T of Income tax act and you are liable for penalty equivalent to 100% of said loan amount that you would adjust as gift. Consult your CA and route this properly in compliance with income tax act to avoid penalty.
Regards,
Manoj